Editor's Note: This story originally appeared on Construction Coverage.
The path to homeownership has been a tumultuous one for prospective buyers in recent years, characterized by a series of fluctuating trends and economic uncertainties.
While buyers benefited from historically low interest rates early in the pandemic, they also faced record price increases due to constrained inventory and intense competition. Now, the landscape has shifted, but not in ways that have provided much relief.
Although high interest rates have moderated home prices to some extent, the adjustments have not proven sufficient to counterbalance the heightened borrowing costs associated with these elevated rates.
Compounding these challenges is the enduring scarcity of housing inventory, which persists across various cities, thereby sustaining relatively high price levels and perpetuating affordability concerns for aspiring homeowners.
The result? The estimated monthly mortgage payment for a median-priced U.S. home is nearly 60% higher today than it was just three years ago.
To determine the locations where homebuyers are most impacted by rising interest rates, researchers at Construction Coverage analyzed the latest data from Zillow and Freddie Mac. For more information on the analysis, refer to the methodology section at the end.
Here are the U.S. metropolitan areas where homebuyers are most impacted by rising interest rates.
10. Columbus, OH
- Percentage change in mortgage payment (2022-present): +67.3%
- Total change in mortgage payment (2022-present): $662
- Mortgage payment for median-priced home (current): $1,645
- Mortgage payment for median-priced home (2022): $983
- Median home price (current): $314,084
- Median home price (2022): $265,069
9. Richmond, VA
- Percentage change in mortgage payment (2022-present): +67.6%
- Total change in mortgage payment (2022-present): $784
- Mortgage payment for median-priced home (current): $1,944
- Mortgage payment for median-priced home (2022): $1,160
- Median home price (current): $371,292
- Median home price (2022): $312,801
8. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
- Percentage change in mortgage payment (2022-present): +68.3%
- Total change in mortgage payment (2022-present): $774
- Mortgage payment for median-priced home (current): $1,907
- Mortgage payment for median-priced home (2022): $1,133
- Median home price (current): $364,089
- Median home price (2022): $305,430
7. Milwaukee-Waukesha, WI
- Percentage change in mortgage payment (2022-present): +71.6%
- Total change in mortgage payment (2022-present): $754
- Mortgage payment for median-priced home (current): $1,807
- Mortgage payment for median-priced home (2022): $1,053
- Median home price (current): $345,021
- Median home price (2022): $283,875
6. Cleveland, OH
- Percentage change in mortgage payment (2022-present): +71.8%
- Total change in mortgage payment (2022-present): $501
- Mortgage payment for median-priced home (current): $1,198
- Mortgage payment for median-priced home (2022): $697
- Median home price (current): $228,843
- Median home price (2022): $188,015
5. Buffalo-Cheektowaga, NY
- Percentage change in mortgage payment (2022-present): +71.9%
- Total change in mortgage payment (2022-present): $565
- Mortgage payment for median-priced home (current): $1,352
- Mortgage payment for median-priced home (2022): $787
- Median home price (current): $258,153
- Median home price (2022): $212,028
4. Providence-Warwick, RI-MA
- Percentage change in mortgage payment (2022-present): +73.9%
- Total change in mortgage payment (2022-present): $1,081
- Mortgage payment for median-priced home (current): $2,544
- Mortgage payment for median-priced home (2022): $1,463
- Median home price (current): $485,870
- Median home price (2022): $394,470
3. Miami-Fort Lauderdale-Pompano Beach, FL
- Percentage change in mortgage payment (2022-present): +74.2%
- Total change in mortgage payment (2022-present): $1,081
- Mortgage payment for median-priced home (current): $2,539
- Mortgage payment for median-priced home (2022): $1,458
- Median home price (current): $484,836
- Median home price (2022): $393,012
2. Hartford-East Hartford-Middletown, CT
- Percentage change in mortgage payment (2022-present): +83.4%
- Total change in mortgage payment (2022-present): $867
- Mortgage payment for median-priced home (current): $1,906
- Mortgage payment for median-priced home (2022): $1,039
- Median home price (current): $364,000
- Median home price (2022): $280,135
1. Rochester, NY
- Percentage change in mortgage payment (2022-present): +83.6%
- Total change in mortgage payment (2022-present): $601
- Mortgage payment for median-priced home (current): $1,319
- Mortgage payment for median-priced home (2022): $718
- Median home price (current): $251,874
- Median home price (2022): $193,643
Methodology
To determine the locations where homebuyers are most impacted by rising interest rates, researchers at Construction Coverage analyzed the latest data from Zillow’s Zillow Home Value Index (ZHVI), a measure of typical home value, and Freddie Mac’s Primary Mortgage Market Survey.
The researchers ranked metros according to the percentage change in the hypothetical monthly mortgage payment for a median-priced home between February 2022 and February 2025, factoring in changes in mortgage rates and home prices. In the event of a tie, the metro with the largest total change in mortgage payment was ranked higher.
The monthly mortgage payments were calculated by assuming a 30-year fixed rate mortgage with a 20% down payment.
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